Malaysia's Prime Minister Anwar Ibrahim presented the Budget 2025 in Parliament, outlining a comprehensive plan to enhance the nation's economic resilience and improve the living standards of its citizens. The budget, themed "Ekonomi MADANI, Negara Makmur, Rakyat Sejahtera," emphasizes education, tourism, and local craftsmanship, while also addressing inflation and social welfare initiatives.
Key Takeaways
- Total Allocation: RM421 billion, with RM335 billion for operating expenditure and RM86 billion for development.
- Minimum Wage Increase: Set to rise to RM1,700 starting February 2025.
- Education Funding: Highest allocation in history at RM64.1 billion.
- Tourism Boost: Initiatives to attract higher tourist influx and promote Visit Malaysia Year 2026.
- Anti-Corruption Strategy: Continued efforts to improve Malaysia's Corruption Perception Index.
Economic Overview
The 2025 budget aims to bolster Malaysia's economy by focusing on key sectors such as education, tourism, and local handicrafts. The government anticipates a significant increase in tourist arrivals, driven by the recovery of the global travel industry and strategic promotions for Visit Malaysia Year 2026.
The Finance Ministry's report highlights that the government will enhance facilities at entry ports and streamline processes to improve the tourism experience. This is expected to restore international tourist arrivals to pre-pandemic levels, reaffirming Malaysia's status as a top global destination.
Education Sector Investment
Education received the largest share of the budget, with RM64.1 billion allocated for 2025. This funding will support various initiatives, including:
- Infrastructure Upgrades: RM2 billion for school maintenance and infrastructure improvements.
- Scholarships: RM4 billion allocated for scholarships, with a focus on lower and middle-income families.
- Digital Education: Continued investment in digital education policies to enhance learning experiences.
Social Welfare Initiatives
The government is committed to improving the welfare of its citizens through various social programs:
- Rahmah Cash Aid: Increased aid for low-income households, with 4.1 million households set to receive RM100 per month starting April 2025.
- Support for Senior Citizens: Enhanced financial support for poor senior citizens, increasing aid from RM8,000 to RM10,000.
- Tax Relief for Homebuyers: Tax relief of up to RM7,000 for first-time homebuyers.
Local Craftsmanship and Economic Growth
In a bid to promote local artisans, the budget includes initiatives to showcase Malaysian handicrafts at the 2025 ASEAN Summit. All gifts and souvenirs will be sourced from local artisans, highlighting the government's commitment to supporting local businesses and preserving cultural heritage.
Anti-Corruption Measures
The government has made strides in combating corruption, as evidenced by an improvement in the Corruption Perception Index. The National Anti-Corruption Strategy (NACS) aims to further enhance integrity and accountability within the government, with a goal of ranking among the top 25 nations in the CPI.
Conclusion
Budget 2025 reflects Malaysia's commitment to fostering economic growth, enhancing social welfare, and promoting local craftsmanship. With a focus on education, tourism, and anti-corruption measures, the government aims to create a more resilient and prosperous nation for all citizens.
Sources
- Live updates: Malaysia Budget 2025, thesun.my.
- Terkini: Belanjawan 2025 | Harian Metro, Harian Metro.
- Budget 2025: Malaysia to showcase local handicraft at 2025 Asean Summit | The Star, The Star.
- Budget 2025: Malaysia poised for higher tourist influx next year | The Star, The Star.
- Malaysia's CPI performance sees boost, targets further progress with anti-corruption strategy 2024-2025 | The Star, The Star.
